Ecuador

Compliance/Financial Considerations

If you intend to do any of the following in Ecuador, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2.

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Ecuador, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Ecuador. For more information about double taxation issues, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122. Transparency International’s 2018 survey of perceived public sector corruption rated Ecuador at 34 out of 100 (114th out of 180 countries reviewed, i.e.  corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations.

Articles

The US State Department's page on ECUADOR may be found HERE.

Personal Safety

ATHORITIES IN ECUADOR ARE LIKELY TO MAINTAIN EXISTING NATIONWIDE MEASURES THROUGH NOVEMBER IN RESPONSE TO THE CORONAVIRUS DISEASE (COVID-19) PANDEMIC. ALL INDIVIDUALS ARE URGED TO PRACTICE SOCIAL DISTANCING AND MUST WEAR A FACEMASK IN PUBLIC SPACES. INTERNATIONAL AND DOMESTIC FLIGHTS ARE PERMITTED HOWEVER, THE LAND AND SEA BORDERS REMAIN CLOSED TO ALL PASSENGER TRAFFIC.  ALL INTERNATONAL PASSENGERS MUST PRESENT PROOF OF A NEGATIVE COVID-19 TEST TAKEN WITHIN 10 DAYS BEFORE ARRIVAL OR COMPLETE A MANDATORY 10-DAY QUARANTINE UPON ARRIVAL. A NEGATIVE COVID-19 TEST IS NOT REQUIRED FOR DOMESTIC TRAVEL HOWEVER, SOME HIGHER-RISK CANTONS MAY REQUEST PROOF OF A NEGATIVE COVID-19 TEST TO PERMIT ENTRY. ALL RESTRICTIONS ARE SUBJECT TO AMENDMENT AT SHORT NOTICE.  SHOULD THE NUMBER OF COVID-19 CASES SIGNIFICANTLY INCREASE, RELAXED RESTRICTIONS MAY BE REAPPLIED. LIKEWISE, A CONTINUED LOW NUMBER OF CASES MAY RESULT IN A FURTHER RELAXATION OF RESTRICTIONS.

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu.

If you are traveling to Ecuador on University-related business, please sign up for the University’s travel insurance program by going here. For more information on the travel insurance program, please go here.

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic

The quality of health care in Ecuador varies widely and is usually substandard outside urban areas. Public ambulances are unreliable. Some hospitals provide ambulance service, but otherwise the best option for reaching medical assistance is via private transportation.

Air pollution can be a problem in urban areas, especially in Cuenca and Quito. If you have a chronic respiratory condition such as asthma, please consult a medical professional prior to your trip and carry appropriate medications.

Cholera is a nationwide risk. The drinking water in Ecuador’s urban areas is treated, but system defects, power outages, and supply shortages may impair quality. Travelers should assume the drinking water in rural areas is contaminated with pathogens or chemicals. To reduce the risk of gastrointestinal discomfort or illness, drink only bottled, boiled, or purified water. Visitors should use well-recognized brands of bottled water whenever possible.

Street vendors and other unregulated food distributors often have poor hygiene standards and should be avoided. Visitors should also avoid raw or undercooked meat dishes and unpasteurized dairy products, which frequently harbor bacterial and parasitic pathogens.

Travelers risk contracting a number of serious illnesses in Ecuador, including:

  • Malaria, transmitted by mosquito bites, year-round but primarily from February to August. The disease is especially prevalent in the northern highlands on both sides of the Andes.
  • Yellow fever, yet another mosquito-borne disease, is widespread.
  • Leishmaniasis, particularly from February through July and in locations below 8,000 feet.  At-risk areas include rural regions of the Pacific coast, the mountain plains, and the eastern Amazon lowlands.
  • Onchocerciasis, or River Blindness, is transmitted by black fly bites and is endemic in Esmeraldas Province on the west side of the Andes.

Crime is a serious risk for travelers due to their perceived wealth and unfamiliarity with the locale. Non-violent thefts, including pickpocketing and purse snatching, are the most frequent causes of loss, and travelers should be vigilant in tourist areas, open markets, public parks, and transportation hubs. But armed robberies and assaults have become increasingly common, especially in Quito and Guayaquil. Ecuadoran gangs, which may include police or former police officers, have become increasingly fond of kidnapping, especially in Guayaquil. In most cases, kidnap victims are forced to withdraw cash from ATMs and released. In more extreme cases, victims are held for ransom.

The Ecuadoran police are poorly paid and hence often corrupt. They respond slowly and rarely solve crimes. Most speak only Spanish.

Strong earthquakes occasionally shake Ecuador. A 7.8 earthquake on April 16, 2016 struck along the coast 100 miles northwest of Quito and killed at least 200 people. To optimize your preparation for an earthquake, review this guidance from the State of California.

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned.

  • Penalties for possessing, using, or trafficking illegal drugs in Ecuador are severe. Offenders can expect long jail sentences and heavy fines.
  • Never agree to carry a suitcase or package through customs for anyone.

Furthermore, some laws are also prosecutable in the United States, regardless of local law. 

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy or U.S. Consulate General immediately.

Hallucinogens: Traditional hallucinogens, often referred to as ayahuasca or San Pedro, are often marketed to tourists as “spiritual cleansing” and typically contain dimethyltryptamine (DMT), a strong hallucinogen that is illegal in the United States, Ecuador, and many other countries. Health risks are not well understood, and, on occasion, people suffer serious illness or death after taking these drugs. Intoxicated travelers also have been assaulted and robbed. These incidents often occur a great distance from medical facilities, making the risks even greater.

LGBTI Travelers: There are no legal restrictions on same-sex sexual relations or the organization of LGBTI events in Ecuador. Same-sex marriage is prohibited, but civil unions are allowed. LGBTI individuals may face discrimination.